Actionable ideas for the busy trader delivered daily right up front
- Tuesday uncertain.
- ES pivot 2322.83 Holding above is bullish..
- Rest of week bias uncertain technically.
- Monthly outlook: bias higher.
- YM futures trader: no trade tonight.
I always get nervous whenever we climb into record territory, wondering when we're going to run out of buyers. Apparently though, that point is not just yet as our call for a higher close Monday paid off with another triple digit advance in the Dow, up 143 as it continues to climb its upper BB to give us a three white soldiers pattern. This obviously can't continue forever - but can it continue one more day? We cast our steely gaze upon the charts as our time grows short and op-ex week rolls on to figure out whither Tuesday.
Market index futures: Tonight, all three futures are lower at 12:20 AM EST with ES down 0.10%.
ES daily pivot: Tonight the ES daily pivot rises again from 2310.50 to 2322.83. And even with that gain ES remains above its new pivot, though only by a bit now. Nevertheless, this indicator continues bullish - for the moment.
January 10 2 7 1 0.846 595
February 4 0 5 0 1.000 519
And the winner is...
The Dow has enjoyed quite a nice three day run, one that's taking on an exponential quality It's also getting pretty overbought at this point. We also note that the trans hit their upper BB on Monday, as well as month-long resistance. And the VIX turned around too on Monday, albeit in an odd sort of way. Also tonight the futures are running lower for the first time in several days.
The question is, are these factors enough to snap our current winning streak? Unfortunately, other than futures being down a bit, there's no really overt bearish candles to be found, at least not enough to make a negative call. So while I never like doing it, I'm going to have to wimp out and simply call Tuesday uncertain.
YM Futures Trader
No trade tonight.